Uscb Financial Holdings, Inc. · NASDAQ:USCB
Uscb Financial — Q3 2024 Earnings Presentation
35 slides from Uscb Financial's earnings presentation, Nov 6, 2024
Slide 1: Investor Presentation Third Quarter 2024
Exhibit 99.1 INVESTOR PRESENTATION THIRD QUARTER 2024 NASDAQ: USCB USBC FINANCIAL HOLDINGS U.S. CENTURY BANK
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-l
Slide 3: Table of Contents
TABLE OF CONTENTS 1 Who We Are 2 Growth Strategy 3 Financial Review 4 Appendix 3
Slide 4: We Are a Relationship-First Bank
WE ARE A RELATIONSHIP-FIRST BANK Company Overview Founded in 2002, U.S. Century Bank is a state-chartered bank headquartered in South Florida 9th largest Florida headquartered bank by deposits in Miami Dade County as of June 30, 2024.(1) Its holding company formed in December 2021, USCB Financial Ho
Slide 5: Located in a Vibrant Economy
LOCATED IN A VIBRANT ECONOMY Florida is one of the largest business markets in the country According to the U.S. Small Business Administration’s 2022 report, Florida ranks third among states with the largest number of small businesses (three million) Enterprise Florida reported the state had the low
Slide 6: Attractive Demographics
ATTRACTIVE DEMOGRAPHICS Household Income Projected Growth 2022-2027 (1) Miami leads expectations of income growth with a 5-year growth rate of 16.98%. 9 cities within the current USCB network are expected to have growth greater than the US and Florida averages Miami-Dade MSA is the premier market wi
Slide 7: Seasoned Management
SEASONED MANAGEMENT Luis de la Aguilera Chairman, President & CEO Previously President & CEO of TotalBank 40+ years in banking Rob Anderson Chief Financial Officer Previously CFO of Capstan Financial Holdings 18+ years in banking Bill Turner Chief Credit Officer Previously CCO of Interamerican Bank
Slide 8: Accomplished Board of Directors
ACCOMPLISHED BOARD OF DIRECTORS Luis de la Aguilera Chairman, President & CEO Previously President & CEO of TotalBank • Director since 2016 Aida Levitan * Board Member President the Levitan Group Director since 2013 Kirk Wycoff V* Board Member Managing Partner, Patriot Financial Partners, LP. Direct
Slide 9: Our Strategy
OUR STRATEGY Organic Loan Growth: Take advantage of platform that we have developed post recap, capitalize on fragmented Miami-Dade MSA community banking market, and continue to build market share Capitalize on inherent advantages over smaller community banks which lack our product expertise and bre
Slide 10: Diversified Business Verticals
DIVERSIFIED BUSINESS VERTICALS Specialty banking products, services and solutions designed for small businesses, homeowner associations, law firms, medical practices and other professional services firms, yacht lending and global banking services Differentiated Banking Product Offerings Jurist Advan
Slide 11: Deposit Aggregating Verticals
DEPOSIT AGGREGATING VERTICALS Deposits Trend (EOP) In millions $88 $229 $312 $352 $446 $492 $554 $575 $644 $48 $129 $138 $154 $177 $200 $209 $226 $250 $10 $38 $77 $68 $97 $112 $134 $130 $127 $30 $62 $97 $130 $172 $164 $211 $219 $246 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 JA/PCQ HOA Co
Slide 12: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS GROWTH Average deposits increased by $136.1 million or 7.0% compared to the third quarter 2023. Average loans increased $267.4 million or 16.6% compared to the third quarter 2023. Liquidity sources as of September 30, 2024, aggregated $695 million in on-balance sheet and off-balan
Slide 13: Historical Financials
HISTORICAL FINANCIALS EOP for Balance Sheet amounts Loans (1) In millions $735 $1,931 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Deposits In millions $782 $2,127 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Total stockholders’ equity In millions $86 $214 2016
Slide 14: Financial Results
FINANCIAL RESULTS In thousands (except per share data) Q3 2024 Q2 2024 Q3 2023 Balance Sheet (EOP) Total Securities $426,528 $406,050 $415,920 Total Loans (1) $1,931,362 $1,869,249 $1,676,520 Total Assets $2,503,954 $2,458,270 $2,244,602 Total Deposits $2,126,617 $2,056,702 $1,920,922 Total Equity (
Slide 15: Key Performance Indicators
KEY PERFORMANCE INDICATORS Q3 2024 Q2 2024 Q3 2023 In thousands (except for TBV/share) GROWTH Total Assets (EOP) $2,503,954 $2,458,270 $2,244,602 Total Loans (EOP) $1,931,362 $1,869,249 $1,676,520 Total Deposits (EOP) $2,126,617 $2,056,702 $1,920,922 Tangible Book Value/Share (1)(2) $10.90 $10.24 $9
Slide 16: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits AVG In millions $1,941 $1,914 $2,049 $2,083 $2,078 $290 $282 $523 $316 $326 $1,011 $1,005 $1,098 $1,101 $1,085 $57 $50 $53 $56 $58 $588 $577 $575 $610 $5,609 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Non-interest -bearing deposits Money market and savings Interest-bearing ch
Slide 17: Liquidity
LIQUIDITY EOP for Balance Sheet amounts Total Liquidity 57.3% 91.9% 86.6% 90.9% 90.8% Sep-23 Dec-23 Mar-23 Jun-24 Sep-27 On Balance Sheet Liquid Assets Total Liquidity Liquid Assets: On-Balance Sheet Liquidity / Total Assets Total Liquidity: Total Liquidity / Total Assets Sources of Liquidity (in mi
Slide 18: Loan Portfolio
LOAN PORTFOLIO Total Loans (AVG) In millions $1,611 $1,699 $1,782 $1,828 $1,878 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Loan Yields 5.55% 5.79% 6.01% 6.16% 6.32% 0.02% 0.00% 0.00% 0.00% 0.00% 5.53% 5.79% 6.01% 6.16% 6.32% +79 bps Q3'23 vs Q3'24 Sep-23 Dec-23 Mar-23 Jun-24 Sep-27 Loan coupon Loan Fee
Slide 19: Loan Production
LOAN PRODUCTION Net Loan Production Trend In millions 8.00% 8.00% 8.16% 8.01% 7.75% $135 $55 $150 $46 $131 $91 $155 $108 $157 $95 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Loan Production/Line changes Loan Amortization/payoffs New loans weighted average coupon Loan Composition Trend EOP (1) In million
Slide 20: Net Interest Margin
NET INTEREST MARGIN Net Interest Income/Margin (1) In thousands (except ratios) 2.60% 2.65% 2.62% 2.94% 3.03% $14,022 $14,376 $15,158 $17,311 $18,109 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net interest income NIM Interest-Earning Assets Mix (AVG) 4% 2% 5% 4% 3% 21% 19% 18% 19% 18% 75% 79% 77% 77% 7
Slide 21: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Loan Portfolio Repricing Profile by Rate Type Hybrid ARM Fixed Rate 44% Variable Rate 53% 23% 12% 65% Prime CMT SOFR Loan Repricing Schedule Variable/Hybrid Rate Loans 29% 38% 12% 21% 0-1 yrs. 1-2 yrs. 2-3 yrs. >3 yrs. Static NII Simulation Year 1 & 2 Net Interest Income ch
Slide 22: Securities Portfolio
SECURITIES PORTFOLIO EOP for Balance Sheet amounts, in millions Portfolio Composition As of 9/30/24 Treasury CMO MBS CMBS SBA Agency Municipalities Corporate Bank Subordinated Debt 5% 33% 22% 20% 7% 6% 5% 2% Commentary Securities portfolio at September 30, 2024 was $426.5 million; 61% of the portfol
Slide 23: Asset Quality
ASSET QUALITY Allowance for Credit Losses In thousands (except ratios) 1.16% 1.18% 1.18% 1.19% 1.19% $19,493 $21,084 $21,454 $22,230 $23,067 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Allowance for credit losses ACL/Total loans Non-performing Loans In thousands (except ratios) 0.03% 0.03% 0.0.3% 0.04%
Slide 24: Loan Portfolio Mix
LOAN PORTFOLIO MIX Residential real estate CRE - Owner occupied CRE - Non-owner occupied Commercial and industrial Correspondent banks Consumer and other 10% 15% 10% 47% 13% 5% $1,928 MM (1) Commentary Total loan balance at quarter end was $1,928 million (1). Commercial Real Estate (owner occupied a
Slide 25: CRE Office Portfolio
CRE OFFICE PORTFOLIO Owner Occupied Office by Business Type In Millions as of 9/30/2024 $19.2 30% $16.4 25% $24.8 38% $4.4 7% Medical/Dental Other Professional Other <$1MM Non-Owner Occupied Office by Business Type In Millions as of 9/30/2024 $12.1 11% $83.0 71% $16.3 14% $4.9 4% Multi-Tenant Medica
Slide 26: Non-Interest Income
NON-INTEREST INCOME In thousands (except ratios) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Total service fees $2,544 $1,977 $1,651 $1,348 $1,329 Wire fees $563 $557 $521 $518 $502 Swap fees $1,285 $650 $285 $16 $97 Other $696 $770 $845 $814 $730 Gain (loss) on sale of securities available for sale - 1
Slide 27: Non-Interest Expense
NON-INTEREST EXPENSE In thousands (except ratios) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Salaries and employee benefits $7,200 $7,353 $6,310 $6,104 $6,066 Occupancy 1,341 1,266 1,314 1,262 1,350 Regulatory assessments and fees 452 476 433 412 365 Consulting and legal fees 161 263 592 642 513 Networ
Slide 28: Capital
CAPITAL Capital Ratios (1) Leverage Ratio TCE/TA (2) Tier 1 Risk-Based Capital Total Risk-Based Capital AOCI In Millions Q3 2024 9.34% 8.54% 12.01% 13.22% ($38.0) Q2 2024 9.03% 8.18% 11.93% 13.12% ($44.7) Q3 2023 9.26% 8.15% 11.97% 13.10% ($51.2) Well-Capitalized 5.00% NA 8.00% 10.00% Commentary The
Slide 29: Takeaways
TAKEAWAYS Leading franchise located in one of the most attractive banking markets in Florida and the U.S. Robust organic growth Strong asset quality, with minimal charge- offs experienced since 2015 recapitalization Experienced and tested management team Strong profitability, with pathway for future
Slide 30: Appendix – Risk Management
APPENDIX – RISK MANAGEMENT Risk Management Philosophy and Culture Management has instilled a culture of adherence to well-developed risk management procedures Management is responsible for day-to-day risk management (identifying, evaluating, and addressing potential risks that may exist at the enter
Slide 31: Appendix – Technology Support
APPENDIX – TECHNOLOGY SUPPORT 2016 FIS Paperless Account Opening January 16 - April 16 2017 cardEZonce Instant Issue Debit Card October ‘16 - March 17 2018 / 9 = Network In-housing —==== January 18 - September 18 . J 2019 / . 2 : — Horizon Core Conversion September ‘18 - September ‘19 2020 / A rarag
Slide 32: Appendix – Technology Support
APPENDIX – TECHNOLOGY SUPPORT 2022 / 9 MANTI Remote Account Opening October ‘21 - March ‘22 Sw Secureworks MXDR platform Feb ‘22-July22‘ ___ ( 1 Ring Central call reporting IY October ‘22 - March ‘23 __ 2023 / 1 re abrigo Loan origination system 9 June ‘22 -May 23 _____ •FedN: w FED Now payments Jan
Slide 33: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios) As of or For the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Pre-tax pre-provision ("PTPP") income: (1) Net income $ 6,949 $ 6,209 $ 4,612 $ 2,721 $ 3,819 Plus: Provision for income tax es 2,213 1,967 1,426 787
Slide 34: Appendix - Non-GAAP Reconciliation
APPENDIX - NON-GAAP RECONCILIATION In thousands (except ratios and share data) As of or For the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Tangible book value per comm on share (at period-end): Total stockholders' equity (1) $ 213,916 $ 201,020 $ 195,011 $ 191,968 $ 182,88
Slide 35: Contact Information
CONTACT INFORMATION LOU DE LA AGUILERA Chairman, President & CEO (305) 715-5186 laguilera@uscentury.com ROB ANDERSON EVP, Chief Financial Officer (305) 715-5393 rob.anderson@uscentury.com INVESTOR RELATIONS InvestorRelations@uscentury.com 35
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